Solution-What amount should be included as the deferred

What amount should be included as the deferred income tax

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Question - Moss, Inc. uses the accrual method of accounting for financial reporting purposes and appropriately uses the installment method of accounting for income tax purposes. It will collect $250,000 of installment income in the following years when the enacted tax rates are as indicated.

Collection of income enacted tax rates

2007 $25,000 35%

2008 50,000 30

2009 75,000 30

2010 100,000 25

The installment income is the firm's only temporary difference.

What amount should be included as the deferred income tax liability in Moss's December 31, 2007 balance sheet?

Reference no: EM131763482

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What amount should be included as the deferred income tax

Reference no: EM131763482

Reference no: EM131763482

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